Are Maryland homeowners, buyers, and sellers facing a cooling real estate market in 2025? The answer is both yes and no. The Maryland housing market is experiencing a gentle shift—not a crash—with moderating prices, low inventory, and steady (if cautious) buyer activity. If you're wondering whether it's a good time to buy or sell a home in Maryland, this article breaks down what you need to know.
Key Trends in the Maryland Real Estate Market
1. Home Prices Are Still Rising—But at a Slower Pace
As of early 2025, Maryland home prices are up about 3-5% year-over-year. This is a marked cooldown from the double-digit gains of the pandemic years. The statewide median price in 2024 was $420,000, up 5% from 2023. In 2025, growth is slower but steady, indicating a healthier and more sustainable market.
2. Housing Inventory Remains Low
Maryland is still facing a tight housing supply, with only 1.5 to 2 months of inventory—far below the 6-month benchmark for a balanced market. However, some signs of improvement are emerging as more homeowners consider listing their properties in response to stabilizing mortgage rates.
3. Mortgage Rates Are High but Stabilizing
30-year fixed mortgage rates are averaging around 6.5% to 6.7% in Maryland as of April 2025. While that’s higher than the record lows of 2020-2021, it’s slightly down from the peaks of late 2023. Experts predict rates will slowly decline through 2025, making home buying slightly more affordable.
4. Sales Volume Has Slowed but May Rebound
Home sales in Maryland fell nearly 10% in early 2025 compared to the previous year. However, analysts expect a rebound later in the year if mortgage rates drop further. There’s significant pent-up demand from buyers waiting for better financing conditions.
Local Market Spotlight: Anne Arundel, Prince George's, Calvert, and Charles Counties
Anne Arundel County
In February 2025, Anne Arundel County's housing market demonstrated modest growth. The median home sale price reached $476,000, marking a 3.4% increase compared to the same period last year. Homes are selling faster, with an average of 30 days on the market, down from 35 days the previous year. This suggests a competitive market favoring sellers. Additionally, the number of homes sold rose slightly to 424, up from 412 last year.
Prince George's County
The housing market in Prince George's County showed positive growth. In February 2025, the median home sale price increased by 5.9% year-over-year, reaching $450,000. Homes are spending slightly more time on the market, averaging 42 days compared to 39 days last year. However, the number of homes sold declined to 575, down from 668 in the same period last year.
Calvert County
Calvert County experienced a slight decline in home prices. As of February 2025, the median sale price was $442,000, reflecting a 5.2% decrease from the previous year. Homes are taking longer to sell, with an average of 56 days on the market compared to 41 days last year. The number of homes sold also decreased to 68, down from 80 in the same period last year.
Charles County
Charles County saw a decrease in home prices. The median sale price in February 2025 was $430,000, down 4.6% from the previous year. Homes are taking longer to sell, with an average of 59 days on the market compared to 54 days last year. The number of homes sold also declined to 175, down from 191 in the same period last year.
Understanding these localized trends is essential for making informed real estate decisions in these counties. While some areas are experiencing growth, others are facing slight declines, highlighting the importance of tailored strategies for buyers and sellers in each market.
What This Means for Maryland Homeowners, Buyers, and Sellers
For Homeowners:
Equity remains strong due to steady price growth.
It's still a seller’s market, but pricing your home competitively is key.
For Buyers:
Affordability is tight, but less competition and stabilizing rates may offer better buying conditions in mid to late 2025.
Get pre-approved and watch for rate dips to make your move.
For Sellers:
Demand is still strong for well-priced, move-in-ready homes.
Be flexible and prepared to negotiate as the market normalizes.
2025 Maryland Housing Market Forecast
Most experts predict that the Maryland real estate market will experience moderate growth through 2025. Price increases will likely stay in the 3-5% range, mortgage rates may ease slightly, and sales activity could increase as buyers regain confidence. This is not a housing crash, but a long-awaited market correction.
Final Thoughts: Should You Buy or Sell in Maryland in 2025?
If you’re considering entering the Maryland housing market, now is a strategic time to plan. While it’s not the red-hot market of years past, the conditions are stabilizing in a way that benefits informed buyers and sellers alike. Whether you’re buying your first home, downsizing, or looking to sell at peak equity, Maryland's 2025 housing market offers real opportunity.
Looking for expert guidance on buying or selling in Maryland? Contact me today for a personalized market analysis.
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